Page 20 - CIMA OCS August 2018 Day 1 Tasks

CIMA AUGUST 2018 – OPERATIONAL CASE STUDY

3 DECISION MAKING
Note: You are unlikely to be asked to do calculations in the exam. However, the following question
will help with familiarisation of the budgetary information.

EXERCISE 3(A) – CVP ANALYSIS

Question Your response

Assuming that budgeted total

fixed production overheads
amount to D$15m in 2019,
calculate a CS ratio for TFT

Estimate the break even sales
revenue and the associated

margin of safety for 2019,
assuming that sales are made
in constant standard mix

16 KAPLAN PUBLISHING